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DXY ShortThe DXY US Dollar Index, which measures the value of the US Dollar against a basket of major currencies, has recently experienced a bearish move, declining from the level of 102.500 to 102.750. This analysis will explore the factors contributing to the bearish sentiment and the potential reasons for the index's downward movement in the specified price range. Dovish Federal Reserve and Interest Rate Expectations: The US Federal Reserve's monetary policy stance plays a significant role in influencing the US Dollar Index. If the Federal Reserve signals a dovish approach, with potential hints at keeping interest rates lower for an extended period, it could reduce the attractiveness of the US Dollar to investors seeking higher returns. This could result in downward pressure on the DXY Index as market participants seek alternative investments with higher yields. Global Economic Recovery and Risk Appetite: As the global economy recovers from the impacts of the COVID-19 pandemic, risk appetite among investors tends to increase. During such times, market participants may shift towards riskier assets and higher-yielding currencies, leading to a sell-off in safe-haven assets like the US Dollar. The improvement in economic indicators worldwide could further dampen demand for the US Dollar, causing the DXY Index to move lower. Trade Balance Concerns and Geopolitical Risks: A significant factor affecting the US Dollar Index is the US trade balance. If the US trade deficit widens or there are concerns about escalating trade tensions with other countries, it could weigh on the US Dollar's value. Additionally, geopolitical risks or uncertainties could lead investors to seek safe-haven currencies other than the US Dollar, leading to a bearish move in the DXY Index. Technical Resistance Levels: Technical analysis of the DXY Index may reveal the presence of resistance levels around 102.500---102.750. If the index encounters selling pressure at this level due to technical factors or the convergence of key moving averages, it could trigger a bearish reversal, leading to a decline in the index's value. Inflation Concerns and Fed Policy Response: Persistently high inflation could lead to concerns about the purchasing power of the US Dollar, prompting market participants to anticipate a more aggressive response from the Federal Reserve, such as raising interest rates. In such a scenario, the US Dollar could face headwinds, resulting in a bearish move in the DXY Index. Conclusion: Considering the dovish Federal Reserve stance, improved global economic conditions, trade balance concerns, technical resistance levels, and potential inflation-related uncertainties, the DXY US Dollar Index is likely to continue its bearish move from the 102.500 to 102.750 levels. Traders and investors should closely monitor relevant economic data, central bank announcements, and geopolitical developments to gauge the strength of the bearish trend and make informed trading decisions.
TVC:DXYShort
by realtrademaster
1
DXY: The power of the economy!Mr. Biden revived the industry to compete with China, but this intervention could put the US economy and its allies at risk, according to the WSJ. Jake Sullivan, President Joe Biden's national security adviser, is often preoccupied with foreign threats, such as the Ukraine conflict. But in April, in a speech at the Brookings Institution, he addressed the threat from within, of the long-held view of Washington elites that "the market has always allocated capital efficiently. and perfomance". Some in policy circles call this view neoliberalism, or free trade, which has been bipartisan for decades. But Sullivan argues, this doctrine has emptied America's industrial base, weakened the middle class and made the country more vulnerable to climate change, Covid-19 and the weaponization of its supply chains. hostile countries. To solve it, he said that the US needs a new approach, a "modern industrial strategy". Accordingly, the government supports stronger investment in industry and commerce to strengthen the middle class and national security. Since the 2020 election, Mr. Biden has tried to come up with a unified theory for his economic policies. And Sullivan's recent remarks on the White House's domestic and foreign goals toward China have more clearly depicted what could be called "Bidenomics," with three pillars. With that comes some blind spots and contradictions in this economic policy, according to the WSJ.
TVC:DXYLong
by Sphyn-Trader
Central Banks USD Reserves Drop to Record LowsI am writing to bring your attention to a concerning trend that has been emerging in the global economy. The de-dollarization movement is now evident as central banks worldwide reduce their US dollar reserves to record lows. This trend indicates that the confidence in the US dollar as the world's reserve currency is declining. As forex traders, we must be aware of this trend and its potential impact on our investments. The US dollar has been the dominant currency in the world for decades, but this is now changing. Countries in the BRICS (Brazil, Russia, India, China and South Africa) have been actively promoting the use of their currencies in international trade, and other countries are following suit. As central banks reduce their US dollar reserves, its value will likely decline. This could lead to inflation and a weaker US economy. As forex traders, we need to take action to protect our investments. I encourage you to sell the dollar and diversify your portfolio into other currencies such as the euro, Australian Dollar, etc. This will help to mitigate the risks associated with the de-dollarization movement and protect your investments. In conclusion, the de-dollarization movement is now evident, and as forex traders, we need to take action to protect our investments. I urge you to diversify your portfolio into other currencies. Let us stay vigilant and proactive in managing our investments.
TVC:DXYShort
by bryandowningqln
DXY: News prediction!My Outlook The unexpected increase in inflation is not a positive development, contrary to what some headlines may suggest. While we anticipate a decrease in inflation, it is unlikely to reach the Fed's target of 2% for several years. This means that the US will likely have higher interest rates than other countries, even if inflation rates are higher elsewhere. This could result in a stronger dollar for an extended period, potentially throughout the year.
TVC:DXYLong
by Sphyn-Trader
DXY: Event influence!Hello traders, I have some USD related information to share with you ♥ US Dollar's position as the primary global reserve currency is being challenged The US Dollar's share of the global market has decreased from 71 percent to 59 percent over the last two decades and could shrink even further in the future. The primary victim in this scenario is the United States, as currency usage in global trade is a zero-sum game. Each time a Yuan, real, or Rupee is exchanged on the global market, a Dollar is not. If credible alternatives gain steam, the dominance of America in the global market will be compromised.
TVC:DXYShort
by Sphyn-Trader
2
DXY - Tool to assess Risk on/ Risk off scenariosHi guys. Welcome to my TA analysis on the dollar index. ALot of talk has been going on about whether or not we are in a bull market for bitcoin and if equities will rally further or not. In order to assess or determine if its likely that we are, the dollar is used by many analysts to gauge at what the sentiment is, whether "RISK ON" or "RISK OFF". As such i also have come to analyze and use DXY as such a tool. RISK ON = When dollar is decreasing in price, other assets tend to go up. ( Hence we hear people mention "oh, the dollar is inversely related to stocks, crypto) RISK OFF = sentiment is scared to invest and people flock to the safety of cash/dollar, Increasing the value of the dollar and prices of other assets decrease in price With that lets look into what i see in the charts for DXY. This analysis is done on the 2 day timeframe. I've zoomed out to include about 17 years of data. So PRICE ACTION As you can see its interacting with the Red line that is drawn on chart. This is the 200 Day Moving Average. If you look left at all the examples i put up, everytime price action goes down we are below this line for atleast 100 days to as long as couple of years. WE also decline between 2% to as much as 20%. The 2 recent times, we were under it for 380 days and 488 days with price dropping further down. Ofcourse our current price action doesnt have to do this but because it occured previously it is not out of the question. At the least expect sideways action, which is also not a bad thing for RISK ON mentality. BUT as of now we have CONFIRMED below the 200 dma on the 2 day timeframe. I expect the dollar to drop more in the intermediate to longer term of atleast 3 months to a 1 year even. The longer the dollar stays below, the stronger RISK ON mentality gets. This would validate the recent Crypto uptrend and may push equities, housing and others up too. To further support my thesis, check out the 2 indicators i put up 1. RSI - I believe we have further sell off on the RSI and im expecting it to do below the 20 level, as it did in the examples i circled with white. Also notice the white horizontal resistance line i drew. As long as we stay below here, it validates my thesis of dollar staying down. Im expecting atleast 1 touch point near or below the 20 level. RSI is a close indicator of price action, when it points down, price usually follows and vice versa. 2. ADX and DI - Ths tracks momentum. As highlighted red line is crossing up, indicating bearish momentum to pick up. When price action is below the 200 dma and a bearish cross occurs we usually go down in price. CONCLUSION: With everything mentioned, in my opinion i believe DXY to go down further in price, it staying in a downtrend for atleast 3 months to 1 year. Supporting the idea that maybe we are in the beginning stages of a crypto bull market and we may see equities rally more. Thanks for tuning in. Hope this helped. If you like the content, please BOOST, COMMENT and FOLLOW. Check out my other charts on DXY. If you liked what you read, i also do potential buy/sell analysis on stock/ cryptos. DISCLAIMER: This is not financial advice. I am not a financial advisor. Everything expressed in my posts are my opinion and for educational purposes. When trading please do manage your risk and protect yourselves with stop losses.
TVC:DXYShort
by SafofAllTrades
DXY H4 ZONE MARKINGWe have an analysis of DXY H4 zone marking According to this analysis, we have found that Dollar is a bullish move because of price is moving above the (200MA & 50 EMA) golden cross-over price also tested the trendline 2 times for more information we marked the Demand & supply zone which is mentioned in the downside Demand zone1@ 104.563 to 104.397 Demand zone2@ 103.676 to 103.492 Demand zone3@ 101.863 to 101.519 Demand zone4@ 100.962 to 100.761 Supply zone @ 105.536 to 105.738 With this analysis, you will be able to find your most profitable trade. EnclaveFX does not recommend that you buy or sell this assist. We do not take any responsibility for your profits & losses. EnclaveFX believes in enhancing the knowledge of our clients & followers
TVC:DXYLong
by Enclave_fx
2